On June 18, Korea Investment & Securities announced that it will newly list 222 Equity-Linked Warrants (ELWs). The newly listed ELWs include 97 index-type ELWs based on the KOSPI200 and KOSDAQ150 as underlying assets, and 125 stock-type ELWs based on individual stocks such as Samsung Electronics, SK Hynix, Kakao, and KB Financial Group.
An ELW is a financial product that allows investors to trade the right to buy or sell individual stocks or stock indices at a predetermined price on the expiration date. If an investor expects the price of the underlying asset to rise, they can purchase a call ELW; if they expect it to fall, they can purchase a put ELW. This enables investors to seek profit opportunities regardless of overall market conditions. However, if the price of the underlying asset does not move in the anticipated direction, investors may incur losses of up to 100% of their principal at maturity.
Korea Investment & Securities currently ranks first in both trading volume and the number of listed products in the ELW market of the Korea Exchange.
Meanwhile, to trade ELWs, investors must complete an investment propensity assessment and a pre-investor education program. In addition, new customers are required to meet a minimum basic deposit of 15 million won. Further details can be found on the dedicated ELW website of Korea Investment & Securities and on the KakaoTalk channel 'TRUE ELW'.
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